Title 20, EducationRelease 119-110

§6321 Fiscal Requirements

Title 20 › CHAPTER 70 — STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › SUBCHAPTER I — IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED › Part A — Improving Basic Programs Operated by Local Educational Agencies › subpart 1 — basic program requirements › § 6321

Last updated Sep 22, 2026|Official source

Summary

A local school district can get these federal funds only if the state finds the district kept up its required level of spending under section 7901. Federal money must only add to state and local money for students in the program and cannot replace it. To show this, the district must prove its method of dividing state and local funds makes sure each school getting federal help still gets all the state and local money it would have gotten without the federal money. The district does not have to label individual costs as “supplemental” or use a specific teaching method or setting to show compliance. The U.S. Secretary cannot require a particular way to divide funds. The district must meet the proof requirement within 2 years after December 10, 2015, but may use the method it used before December 10, 2015, to show compliance earlier. A district can get funds only if state and local money pay for services in schools that are, overall, at least as good as services in schools not getting the federal help. If every school in the district gets federal help, each school must have substantially comparable services. The district can compare by grade span or school by school. A written promise filed with the state that the district has a district-wide pay schedule, a policy to keep teacher and staff quality equal, and a policy to keep curriculum materials and supplies equal will meet this test. When comparing spending per student, pay differences for years of service are not counted. Unexpected changes after the school year starts can be excluded. The district must make procedures, keep records updated every two years, and the rule does not apply if the district has no more than one building per grade span. The district may exclude funds used for language instruction or the extra costs of serving students with disabilities when checking comparability. The state or district may also exclude supplemental state or local funds used for programs that meet the goals of this federal program.

Full Legal Text

Title 20, §6321

Education, Source: USLM XML via OLRC

(a)Maintenance of effort
A local educational agency may receive funds under this part for any fiscal year only if the State educational agency involved finds that the local educational agency has maintained the agency’s fiscal effort in accordance with section 7901 of this title.
(b)Federal funds to supplement, not supplant, non-Federal funds
(1)In general
A State educational agency or local educational agency shall use Federal funds received under this part only to supplement the funds that would, in the absence of such Federal funds, be made available from State and local sources for the education of students participating in programs assisted under this part, and not to supplant such funds.
(2)Compliance
To demonstrate compliance with paragraph (1), a local educational agency shall demonstrate that the methodology used to allocate State and local funds to each school receiving assistance under this part ensures that such school receives all of the State and local funds it would otherwise receive if it were not receiving assistance under this part.
(3)Special rule
No local educational agency shall be required to—
(A)identify that an individual cost or service supported under this part is supplemental; or
(B)provide services under this part through a particular instructional method or in a particular instructional setting in order to demonstrate such agency’s compliance with paragraph (1).
(4)Prohibition
Nothing in this section shall be construed to authorize or permit the Secretary to prescribe the specific methodology a local educational agency uses to allocate State and local funds to each school receiving assistance under this part.
(5)Timeline
A local educational agency—
(A)shall meet the compliance requirement under paragraph (2) not later than 2 years after December 10, 2015; and
(B)may demonstrate compliance with the requirement under paragraph (1) before the end of such 2-year period using the method such local educational agency used on the day before December 10, 2015.
(c)Comparability of services
(1)In general
(A)Comparable services
Except as provided in paragraphs (4) and (5), a local educational agency may receive funds under this part only if State and local funds will be used in schools served under this part to provide services that, taken as a whole, are at least comparable to services in schools that are not receiving funds under this part.
(B)Substantially comparable services
If the local educational agency is serving all of such agency’s schools under this part, such agency may receive funds under this part only if such agency will use State and local funds to provide services that, taken as a whole, are substantially comparable in each school.
(C)Basis
A local educational agency may meet the requirements of subparagraphs (A) and (B) on a grade-span by grade-span basis or a school-by-school basis.
(2)Written assurance
(A)Equivalence
A local educational agency shall be considered to have met the requirements of paragraph (1) if such agency has filed with the State educational agency a written assurance that such agency has established and implemented—
(i)a local educational agency-wide salary schedule;
(ii)a policy to ensure equivalence among schools in teachers, administrators, and other staff; and
(iii)a policy to ensure equivalence among schools in the provision of curriculum materials and instructional supplies.
(B)Determinations
For the purpose of this subsection, in the determination of expenditures per pupil from State and local funds, or instructional salaries per pupil from State and local funds, staff salary differentials for years of employment shall not be included in such determinations.
(C)Exclusions
A local educational agency need not include unpredictable changes in student enrollment or personnel assignments that occur after the beginning of a school year in determining comparability of services under this subsection.
(3)Procedures and records
Each local educational agency assisted under this part shall—
(A)develop procedures for compliance with this subsection; and
(B)maintain records that are updated biennially documenting such agency’s compliance with this subsection.
(4)Inapplicability
This subsection shall not apply to a local educational agency that does not have more than one building for each grade span.
(5)Compliance
For the purpose of determining compliance with paragraph (1), a local educational agency may exclude State and local funds expended for— (A)
(B)the excess costs of providing services to children with disabilities as determined by the local educational agency.
(d)Exclusion of funds
For the purpose of complying with subsections (b) and (c), a State educational agency or local educational agency may exclude supplemental State or local funds expended in any school attendance area or school for programs that meet the intent and purposes of this part.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 6321, Pub. L. 89–10, title I, § 1120, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3557, related to participation of children enrolled in private schools, prior to the general amendment of this subchapter by Pub. L. 107–110. A prior section 1118 of Pub. L. 89–10 was renumbered section 1116 and is classified to section 6318 of this title. Another prior section 1118 of Pub. L. 89–10 was classified to section 6319 of this title, prior to the general amendment of this subchapter by Pub. L. 107–110.

Amendments

2015—Subsec. (a). Pub. L. 114–95, § 1012(1), made technical amendment to reference in original act which appears in text as reference to section 7901 of this title. Subsec. (b). Pub. L. 114–95, § 1012(2), added subsec. (b) and struck out former subsec. (b) which consisted of pars. (1) and (2) relating to general use of funds only to supplement and not to supplant non-Federal funds and special rule that no local educational agency be required to provide services through a particular instructional method or in a particular instructional setting.

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 AmendmentAmendment by Pub. L. 114–95 effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of this title.

Reference

Citations & Metadata

Citation

20 U.S.C. § 6321

Title 20, Education

Last Updated

Sep 22, 2026

Release point: 119-110